Warning over UAE loan scam run by 'fake bank'

Customers were offered easy loans in exchange for small fee

This fake certificate was used to persuade customers the bank was legitimate

The Dubai Financial Services Authority (DFSA) has issued a warning about a scam offering easy loan approvals in exchange for a small fee.

The scam, which is operated in the name of Skyo Microfinance Bank Limited, asked individuals to transfer a fee to fund an insurance policy against the loan.

A false certificate of authentication, purportedly issued by the DFSA, was also being used to convince people that the offer is real.

The scam has been so convincing that the DFSA posted a warning on its website.

“The DFSA advises the public that it does not issue certificates of incorporation of any kind to any company, firm or individual,” read a statement on the DFSA website.

"The certificate which is used by Skyo Microfinance Bank Limited is false.
"The DFSA strongly advises prospective individuals not to respond to Skyo Microfinance Bank Limited or any other person or company representing the firm."

The financial services authority also warned against sending money to Skyo.